Explanatory Memorandum
(Circulated by authority of the Minister for Climate Change and Energy Efficiency, the Hon Greg Combet AM MP)Chapter 2 - Transitional provisions
Outline of chapter
2.1 This chapter describes the transitional provisions included in Part 2 of Schedule 1 of the Carbon Credits (Consequential Amendments) Bill 2011. These transitional provisions address the arrangements for accounts established in the Australian National Registry of Emissions Units (the Registry) prior to commencement of the legislation. They also address the arrangements for audit determinations made under section 75 of the National Greenhouse and Energy Reporting Act 2007 prior to commencement.
Context of amendments
Australian National Registry of Emissions Units
2.2 The Registry is an electronic system which is used to ensure accurate accounting of the issuance, holding, transfer, acquisition, cancellation, retirement and carry-over of emissions units under the Kyoto Protocol.
2.3 The Registry was established under the Commonwealth's executive power to meet one of Australia's commitments under the Kyoto Protocol and does not currently have a legislative basis.
2.4 The Government intends to modify the Registry so that it can be used to track the location and ownership of units issued under the CFI, as well as meet ongoing obligations under the Kyoto Protocol. The Registry would be maintained by the Administrator of the CFI.
2.5 Since the Registry was opened in September 2009, organisations and individuals have been able to apply to open accounts and participate in the domestic and international trade of Kyoto units.
2.6 The amendments contained in Part 2 of Schedule 1 to the consequential amendments bill allow for accounts established under the administrative Registry to continue in existence with minimal disruption or additional approvals required for account holders.
Audit Determinations
2.7 Under section 75 of the National Greenhouse and Energy Reporting Act 2007 (NGER Act), the Minister may determine requirements to be met by audit team leaders in preparing for and carrying out greenhouse and energy audits and in preparing audit reports.
Summary of new law
2.8 Accounts held in the non-statutory Registry prior to commencement will continue in existence under the legislated Registry.
2.9 Pre-existing audit determinations will continue in existence despite the amendments to section 75 of the NGER Act.
Detailed explanation of new law
Australian National Registry of Emissions Units
2.10 The Registry will be established under Part 2 of the Registry bill. Part 2 of Schedule 1 of the consequential amendments bill provides transitional arrangements for accounts in the Registry which was established administratively prior to the commencement of the legislation.
2.11 Accounts held by either the Commonwealth or another person will continue in existence as Registry accounts [ Schedule 1,Part 2, item 17 ].
2.12 The designation of the various Commonwealth accounts will be unchanged [ Schedule 1, Part 2, item 18 ].
Audit Determinations
2.13 Audit determinations made under section 75 of the NGER Act that are in force immediate before commencement of the item will be treated as if they had been made under the amended section 75. This means that registered greenhouse and energy auditors undertaking CFI audits will be required to comply with them [ Schedule 1, Part 2, item 19 ].